Unlocking Private Investment in Emerging Market Solar Power

A One-Stop Shop For Fast,
Affordable Solar Power

The Challenge

Solar power has enormous potential as an energy source in emerging markets. At the same time, the cost of solar photovoltaic technology has fallen dramatically—solar PV can now deliver power less expensively and with more long-term price certainty, than coal-fired power.

Many countries have struggled to develop utility-scale solar power plants as a result of challenges that include:

Limited Institutional Capacity

Many governments in emerging markets have limited capacity to manage, structure and negotiate private power concessions.

Lack of Scale

Navigating small and distinct power markets can deter investors and small grids can only absorb small projects.

Lack of Competition

Many power projects in emerging markets are not competitively tendered.

High Transaction Costs

Individually negotiated contracts have high transaction costs.

High Perceived Risk

Poor credit utility off-takers and political risks increase the cost of capital, driving up tariffs.

The Solution

Scaling Solar brings together a suite of World Bank Group services under a single engagement aimed at creating viable markets for solar power in each client country. The “one stop shop” program aims to make privately funded grid-connected solar projects operational within two years and at competitive tariffs. When implemented across multiple countries, the program will create a new regional market for solar investment.

We offer a package that includes:

Advice

To assess the right size and location for solar PV power plants in a country’s grid.

Simple and Rapid Tendering

To ensure strong participation and competition from committed industry players.

Fully Developed Templates

Of bankable project documents that can eliminate negotiation and speed up financing.

Competitive Financing and Insurance

Attached to the tender and available to all bidders, delivering competitive bidding and ensuring rapid financial close.

Risk Management and Credit Enhancement

To lower financing costs and deliver power at lower tariffs.

The Benefits

Governments and Utilities

Speed

Templates for all processes and documents enable rapid preparation, tendering and financial close.

Certainty

Balanced, bankable documents that can be offered to bidders on a non-negotiable basis with the comfort of pre-approved financing available to all suitable bidders.

Low Costs

Tenders designed to attract competition among top-tier investors and minimize resulting tarrifs.

Project Developers and Investors

Market Creation

Consistent tendering and bankable documentation will open up regional opportunities for qualified developers looking for new markets.

Reduced Development Time and Costs

Technical diligence and approval requirements in place. Set of bankable documents and pre-approved financing.

A Level Playing Field

Clear and transparent award process allowing developers and investors to compete on the basis of lowest tariffs and long-term commitment.

International Donors and Development Partners

Reach

Support to multiple low-income, fragile and conflict-affected states to achieve energy security and sustainable low-carbon growth.

Leverage

Donor support will leverage significant amounts of private capital through transparent, competitive tenders.

The Process

Achieved within Two Years

The World Bank Group has decades of experience leading power projects across the globe. A key objective is making renewable energy more accessible in developing countries – particularly places with abundant sun, wind, and hydro resources. We are experienced in developing and investing in bankable private power projects and have a substantial track record in both tendering and financing solar power plants.

Solar generation can be achieved within two years of engaging Scaling Solar advisers.

Steps 1 – 3 Take 8 Months

Project Preparation

Technical and economic analysis

Site investigation

Legal & regulatory analysis

Bid Preparation

Localization of tender and project documents

Attachment of financing, insurance, and credit enhancement

Tender Process & Award

Request for qualification

Bidder consultation

Request for proposals

Proposal review and award

Signing of project documents

Step 4 Takes 6 Months

Financial Close

Finalization of contracts

Final project approvals

Finalization of loan agreements, insurance, and risk management

Step 5 Takes 10 Months

Construction & Operation

Construction

Commissioning

Operations

Demonstrated through our

Active Engagements

See what active engagements are currently underway across emerging markets.